South Korea has fined Google and Apple a combined $47.6 million over alleged violations of its app store and payment regulations. The decision targets restrictions on developers’ payment choices, commission policies and app review procedures.
The Korea Media and Communications Commission (KMCC) imposed a fine of approximately $32 million on Google and $15.6 million on Apple. In addition, the regulator ordered both technology companies to revise their policies and expand payment options for app developers.
Why Did South Korea Fine Google and Apple?
The KMCC found that both companies restricted how developers could accept payments for digital purchases. According to the regulator, Google and Apple pushed developers towards their respective in-app payment systems.
Although the companies permitted certain third-party payment services, they charged a 26% commission on those transactions. Moreover, alternative payment methods lacked some features available through their own systems, including subscription management.
The regulator also found that both companies prevented developers from directing users to external websites to complete payments. Consequently, these restrictions made alternative payment methods less attractive and encouraged developers to use the companies’ payment systems.
South Korea introduced legislation in 2021 to prevent app store operators from forcing developers to use specific payment systems. The latest penalties mark the first enforcement action under that law, according to the reported decision.
App Review Delays and Commission Disputes
The investigation also raised concerns about how Google and Apple handled app reviews. The KMCC found that both companies sometimes delayed reviews without clearly explaining the reasons or indicating when the process would resume.
Furthermore, the companies did not adequately address developers’ questions about these delays, according to the regulator.
Apple faced an additional finding concerning its commission calculations. The KMCC determined that Apple used different pricing methods for South Korean developers and developers based overseas.
For South Korean developers, Apple calculated commissions using prices that included value-added tax (VAT). However, it calculated fees for overseas developers using prices before VAT.
The regulator concluded that this difference placed South Korean developers at an unfair disadvantage.
What Changes Must Google and Apple Make?
The KMCC has ordered both companies to revise their app store policies and provide developers with greater flexibility over payments.
The required changes include:
- External payment links: Developers must be allowed to link users to external payment websites from within their apps.
- Third-party payment rules: Google must revise its guidelines governing alternative payment methods.
- App submissions: Apple must remove its requirement for separate app submissions when developers offer alternative payment options.
- Commission policies: Both companies must revise their commission rules, while Apple must ensure its calculations do not discriminate against South Korean developers.
- App review procedures: Google and Apple must improve their review processes and address concerns about unexplained delays.
Both companies must submit compliance plans within one month of receiving the orders. They will then have three months to implement the required changes.
However, the regulator has not filed criminal complaints against either company.
How Have Apple and Google Responded?
Apple has disputed the regulator’s findings, maintaining that its existing policies comply with South Korean law. The company also argued that its payment system protects customers against fraud and other risks.
Meanwhile, Apple is reviewing its legal options following the decision.
Google also expressed disappointment, arguing that the regulator had not adequately considered its recent efforts to expand payment choices and reduce fees.
In March, Google announced changes to its payment policies, including plans to support external payments and lower service fees.
Both companies already permit external payment options in certain other markets, including the United States and the European Union.
South Korea’s Investigation Began in 2022
The KMCC launched its investigation into Google and Apple’s app store practices in 2022. Investigators examined payment policies, developer fees and app approval procedures, including through on-site inspections.
The regulator announced its final decision on October 28, 2026, following the investigation.
The enforcement action signals South Korea’s intention to apply its rules on mandatory in-app payment systems. Moreover, the KMCC says it will continue monitoring the app market to ensure compliance and promote fairer payment options for developers.
For app developers, the outcome could create more flexibility in how they charge customers. However, the practical impact will depend on how Google and Apple implement the required changes.
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